Joint Committee on Foreign Affairs and Trade debate -
Wednesday, 6 May 2015

Developing Growth Markets: IDA Ireland

Acting Chairman (Deputy Olivia Mitchell)

I welcome our visitors from IDA Ireland: Ms Eileen Sharpe, head of growth markets and IT, Mr. John Conlon, executive vice president and head of Asia Pacific operations, and Mr. Shane Nolan, head of growth markets. They are attending to discuss activities in developing business and investment in growth markets. Our specific interest is the Association of Southeast Asian Nations, ASEAN, area, on which the committee intends to do a report after the summer. I welcome our guests.

The format of today's meeting will involve opening statements from our visitors, after which we will take questions from members of the joint committee. I apologise for the low turnout. The commemorations at Arbour Hill are on this morning and we have lost many members to it. I hope they will turn up before the meeting is over.

I remind members, witnesses and those in the Public Gallery to ensure all mobile telephones are switched off as they interfere with the recording equipment. In advance of the IDA's presentations, I remind members of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person or body outside the Houses or against an official either by name or in such a way as to make him, her or it identifiable. By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the joint committee. If they are directed by the Chairman to cease giving evidence on a particular matter and they continue to do so, they are entitled thereafter only to qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and are asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person or entity by name or in such a way as to make him, her or it identifiable.

I invite Ms Sharpe to begin her presentation.

Ms Eileen Sharpe

I thank the committee members for inviting us to provide a briefing on IDA activities in growth markets. We have had an office in the growth markets, specifically in Tokyo, since the mid-1980s, and have had a part-time presence in Sydney since the mid-1990s. However, it was not until 2006 that we began our growth markets journey in earnest by establishing our first office in Shanghai. Until the late 1990s, our efforts were almost exclusively concentrated on the US and the EU. The US was and continues to be Ireland's main source of foreign direct investment, FDI. In the late 1990s, though, matters changed. There was a shift eastwards and the emerging markets began generating significant levels of FDI. IDA Ireland needed to adapt and change to reflect the change in the investment environment.

With this in mind, we began our growth markets journey by setting up our first office in Shanghai. In the following years, we built up a portfolio of offices in the growth markets region. We followed Shanghai with an office in Mumbai, India, and a second China office in Shenzhen. We went on to Moscow and opened a second Indian office in Bangalore. We went to São Paulo in Brazil, Seoul in South Korea and Singapore. Most recently, we opened a new office in the Irish Embassy in Beijing. We also established a growth markets division in Dublin to support and work through the consequences of all of the activity in the marketplace.

In terms of measuring our performance, we set targets in 2010 of achieving 4% of all new name investments for IDA Ireland from growth markets regions. From 2010 to 2014, we increased that significantly. Last year, 20% of all new name investments for IDA Ireland came from growth markets regions. Today, we have more than 100 growth markets clients who employ more than 9,500 people throughout the country.

We see growth markets as an excellent opportunity for the future of the country while recognising the challenges of operating in these environments, which are very different from the USA and Europe. The primary difference is by way of business culture. The business culture within each country is different. There is a complexity of language across many of these economies and the reality is that Ireland is relatively unknown in many of them. The geographies are absolutely vast and populations are measured in billions, not millions. At the same time, there are millions of trading companies through which we have to navigate. It is a complex market. The other significant challenge is that there are no direct air links with some of our major markets. Despite these challenges, there is a compelling investment case for IDA Ireland for the future from these markets and we need to box clever in terms of how we work out there to maximise our impact. In the growth markets arena, we work very much as part of a team Ireland effort. There are not that many people representing Ireland in these regions so we work as a team. We get very valuable support from our own Department of Jobs, Enterprise and Innovation and work closely with the Department of Foreign Affairs and Trade, the Department of the Taoiseach, the Department of Finance, the NTMA and Enterprise Ireland. It is very much a team effort in these regions. In some of the countries and in China in particular, government-to-government relations are a very important element of the business development case. In that context, ministerial visits to these countries play a critical part in business development activity.

In approaching these vast markets, we aim to attract major brands and household names. That way, we get Ireland and IDA Ireland associated with household names, which has an impact in terms of our further development. It leads to more sustainable investment projects here. We also develop special marketing programmes and marketing materials which are specific to each territory. They are geared to the particular culture of a particular country. In the presentation packs circulated to members, we have included some examples of different presentation materials in different languages.

In summary, increasing the share of investment from growth markets is an integral and critical part of the IDA's new strategy. For 2015 and beyond, our aim is to increase significantly the level of investment we get from these regions. That is a reflection of the importance we place on our activities in these markets. I thank the committee.

Acting Chairman (Deputy Olivia Mitchell)

I was conscious while reading the presentation of the drop in investment from Britain, which is the most dramatic thing that has happened in the past ten to 15 years. It highlights the need to adapt all the time to where business is coming from.

Indonesia is one of the places we have targeted by opening an embassy because we see the potential there. I think the same applies in Thailand. Indonesia, which has a huge population and great potential, is one of the great success stories in Asia. Has the IDA any plans to capitalise on the fact that we now have embassies in countries such as Indonesia?

Ms Sharpe mentioned air links. Few enough European countries have direct air links with Asia. It is really only countries which have major hubs. We have had the advent of flights to the Middle East. There are a number of flights every day. Does that help? Is there one particular country that we are losing out on because we do not have a direct flight there?

Ms Eileen Sharpe

We recognise that the embassies in countries such as Indonesia and Thailand will be of great support to us. We work closely with our ambassadors and the senior officials in the Department of Foreign Affairs and Trade and they regularly give us leads on investment potential. The area will be covered from our ASEAN base in Singapore. At a practical level, what happens is the ambassador or one of his or her officials will contact the IDA with a lead and our representative will follow that lead wherever it is. Where we put the actual offices and a physical presence will be determined and prioritised according to where we see the best opportunity in the short to medium term.

Acting Chairman (Deputy Olivia Mitchell)

On the flights?

Ms Eileen Sharpe

To answer the Acting Chairman's question in terms of the impact of the Middle East market, it has been very big. We have a large volume of visitors from China, in particular, and India. Many of these are using the Middle East routes. It is clean and it is easy. There is a reality though. We are seeing an increased flow of visitors from China, which is not made easy by not having a direct flight. We work closely with the Dublin Airport Authority and it has had regular investment visitors here looking at the potential for developing direct air links. We work closely with it. It is an important feature.

Deputy Brendan Smith

I welcome Ms Sharpe and her colleagues and thank her for her presentation. The employment of 9,500 people in companies which have come from that particular emerging markets area is of great significance to our economy. We often hear figures quoted about there being in excess of 100,000 people employed by US companies in Ireland. We know that there are a similar number of people employed by Irish companies in the US. Are there Irish companies with significant presence in those emerging markets and is there a chance to internationalise our business and our companies from that point of view as well?

Ms Sharpe mentioned the business culture and the complexity of language. Is there enough being done at educational level, particularly in third level colleges, universities or institutes of technology, on the need to equip people for the business culture which prevails in that region and also in regard to proficiency in languages? I know that some students are studying Mandarin in UCD, but how clued in are our education system, institutes and universities to upskilling people for those particular language needs.

Ms Sharpe mentioned that Ireland is relatively unknown. I can imagine that to be the case, which takes me to the point that I am sure the people out there do not know that Cavan-Monaghan, the constituency I am privileged to represent, even though it is in this State, is part of Ulster. Is there enough collaboration between the IDA and Invest Northern Ireland, the Northern Ireland Department or its promotion agency? If we are to move on the potential of the Good Friday Agreement, and we welcome the establishment of the all-Ireland implementation bodies, there has to be scope and potential to market all of Ireland, all of our country, through one organisation, especially in regions where we are not known, where Ireland is relatively unknown, to quote Ms Sharpe.

I hope progress can be made on that issue. I know that there is some collaboration through trade promotions and visits, but can we move it a step further to have much needed momentum? The bringing together of two promotion bodies with a particular focus should help in areas where markets are being promoted.

When companies decide to locate in Ireland, I am sure there a number of ingredients that help them to determine to do so. In what order would IDA Ireland put the determining factors in making such a decision? Is the main factor access to EU markets, our skills base or the huge investment in research, development and innovation in the past 15 years or so? While we have made great strides in leading research in some areas of activity, what are the key ingredients which bring companies to this country?

While I know that this area is not the concern of our guests, I hope they will bring back to their colleagues the fact that areas such as Cavan, Monaghan and other rural counties have a continued well founded grievance about the lack of IDA Ireland promotion of these areas and the lack of inward investment. I compliment IDA Ireland on its ongoing successful work during the years, but we need a greater focus on delivering for the regions. Years ago when I first became a Member of the Oireachtas, we were told that one of the huge obstacles in promoting an area such as Cavan or Monaghan was road access, but that obstacle has been eliminated. The areas mentioned have a huge pool of skilled young people; I hope, therefore, that there will be a particular focus on Cavan, Monaghan and similar counties in an effort to attract much needed investment. I do not expect our guests to comment on this issue, but I hope they will relay this message to their colleagues who have responsibility for it.

Deputy Eric Byrne

I apologise for missing some of the presentation, but based on what I have heard, I congratulate IDA Ireland on the phenomenal work it has done on behalf of Ireland Inc.

I apologise that, owing to the bank holiday weekend, I have not fully read the background documentation, but I have a couple of questions to ask. How relevant to our guests is the Joint Committee on Foreign Affairs and Trade, given that there are probably other more important Departments in creating employment? We are experts on Irish Aid, tackling poverty and dealing with problem countries, be they the difficulties of Balochistan in Pakistan to those in Biafra and Bosnia-Herzegovina, but none of us is particularly expert in trade or business. Therefore, how relevant is our role in the promotion of trade?

Having been involved in the Dublin-Beijing twinning arrangements and visited China a number of times, including the time a deal was signed with the mayor of Beijing, I wonder if IDA Ireland sees a role for Ireland at local government level? In particular, does it see itself having a role in capital cities with which Dublin has been twinned? Our guests will be aware, for example, that Dublin City Council has a reasonably sophisticated international office which deals constantly with companies or visitors from all around the world, including Oman, China and elsewhere.

Does the delegation think we are adequately co-ordinated with local authorities? Local authorities do excellent work in many cases. Does the delegation think we are building on the relationships that were established under the twinning arrangements? The delegation pointed out, with which I concur, that China and its people have a hierarchical attitude to governments, ministers, backbenchers, mayors and people like that.

Senator Jim Walsh

Just like here.

Deputy Eric Byrne

Has the delegation found that to be the case? How would it encourage this Government to recognise the cultural relationships and attitudes of certain countries to development, including China?

When one thinks of Ireland one thinks of food produce, Bord Bia, indigenous successes, tourism and education. Does the authority play a role, for example, in education? As we all know, there is a huge benefit to be gained from every foreign student registered in an English language or, better still, a third level educational institution. Last week speakers attended here who were very critical of the uncoordinated behaviour of the universities and colleges of technology in these countries. It was claimed they competed with each other instead of waving the tricolour on behalf of Ireland Inc. Perhaps the issue is not in the field of expertise of the authority but if it is then please answer my query.

We are targeting newly emerging and healthy economies. Does the authority confront, is it aware of or how does it handle institutional corruption? We are aware that many of the countries in the world are emerging democracies. In addition, cultural attitudes to power and corruption is more prominent in emerging countries than in established western democracies. Does the authority play a role in promoting business? How difficult is it for business to operate in countries that the authority operates in now? Has it seen elements of corruption?

Deputy Seán Crowe

I welcome the delegation. Deputy Smith must have looked over my shoulder and read my questions because his questions are similar to mine.

Deputy Brendan Smith

No, Deputy. I had all of my questions prepared for me.

Deputy Eric Byrne

Perhaps the Deputies have the same scriptwriter.

Deputy Seán Crowe

Our queries stem from the same background of last week's meeting when we had a discussion with the Irish Exporters Association. We gained a lot of information from the encounter.

I wish to commence by congratulating the authority on the outstanding work it has done. I note from its report that it had set a target of achieving 4% of new investments in Ireland, or companies investing in Ireland for the first time, to come from so-called growth markets. The authority has excelled itself by achieving 20% of new investments which indicates its professional approach. Such success gives people much desired glimmers of hope that the economy is improving. What attracts many of those new companies to invest? Deputy Smith asked a similar question. US companies have told us that they are attracted by a corporation tax of 12.5% and the rate can be lower in a lot of cases. Other people have spoken in terms of the quality of life, security, accommodation, schools, transport, public services, libraries, theatres and so on which is another package that the authority can sell to people.

Although we have been successful there has been criticism that many of the new jobs are on the east coast and around Dublin. Is it more difficult, as one moves away from the major cities, to secure investment because certain regions lack particular services? Growing public services, community services and cultural organisations will not only benefit Irish society but will also help attract foreign investment.

This is not just for the benefit of Irish society. That is the link. How important is this? Does the IDA have a structured input in terms of what is lacking in an area?

Last week, I asked about the importance of the hotels and other accommodation provided for people from different cultural backgrounds whom the IDA brings to Ireland for the first time, that is, whether they are knowledgeable about those people's cultural norms when, for example, asking whether they would like a drink, pork or bacon. These are simple matters. Do we have specialist hotels? Does this form part of the IDA's preparations when bringing people to Ireland?

In terms of new name investments from growth markets, particularly non-English speaking countries in Asia, is the approach taken to incentives the same as it is for the North American market? How important is the continuity of the 12.5% effective tax rate when selling Ireland to companies?

Hundreds of growth markets clients are operating in Ireland and employ 9,500 people across the State. Do they bring many workers with them from their own countries? I asked the exporters about difficulties with visas and so on. Is the IDA's co-ordination of this issue seamless or are there difficulties?

I can see the successes, but what are we getting wrong? I assume that our committee's role is to make recommendations. What could be done better? Last week, the closure of a university's language course was mentioned. Does this issue arise on the IDA's agenda? How does it feed into the Department?

The all-Ireland economy was mentioned. What co-operation does the IDA have with its counterpart in the North? We sell Ireland on an all-Ireland basis. Many of our trade missions are all-Ireland. When planning investments, do companies raise issues about the Border? This and the European committees are discussing the possibility of Britain withdrawing from the EU. How important a factor is that? Will difficulties arise if there is a Conservative Government in Britain?

Are there structures for returning immigrants? The exporters stated that they worked closely with chambers of commerce, but is a separate structure required in those countries? Chambers of commerce attract a particular type of individual, but I am more concerned about people who attended language schools, worked or were educated in Ireland before returning to their own countries. Is it important that we use their good will? What of creating initiatives for former emigrants in Ireland who worked in the emerging Asian markets and so on? The exporters stated that there was a great deal of good will. A meeting could be pulled together. As we grow more successful, this will take off, but is such work being done in those countries? It is probably more difficult to do in Ireland. Is there a role for such structures?

Acting Chairman (Deputy Olivia Mitchell)

Before turning to the IDA, someone has his or her telephone on and it is interfering with the communications system.

The telephone must be turned off and not just put on silent mode. I will come back to Senator Mullins and-----

Senator Jim Walsh

I have to leave.

Acting Chairman (Deputy Olivia Mitchell)

Will the Senator be brief?

Senator Jim Walsh

Yes. I welcome the IDA delegation. Like other members I am well aware of the good work the IDA has done in the past, and continues to do. It is probably not the witnesses' area but a concern I have is that we are a developing a two-tier economy, one in Dublin and one in the rest of the country. There must be much better regional focus by the IDA than is currently the case. Most foreign direct investments, FDIs, coming here - I dealt with the IDA regarding a number of companies that came to Wexford over 25 years ago - want to locate in Dublin so there must be active encouragement to get them to locate in the provinces, and that does not seem to be happening. I do not believe the regional hubs we set up are serving the regions well.

It is significant that the IDA has increased to 20% investments from those developing areas. That is a positive development. Can the witnesses give us an idea of the figures? They said there were 9,500 employed here but what about Irish companies that have enterprises in those regions? Many companies now have bases abroad, particularly in Asia. It was put to us previously, and I hope the witnesses recognise this, that in the Association of Southeast Asian Nations, ASEAN, there tended to be an over-concentration on China but putting all our eggs in one basket, as we found out in this country, is not a good idea, be it geographic, sectoral or whatever. That is my first point.

Second, the witnesses mentioned that Ireland was relatively unknown abroad. What initiatives do they have to create awareness around Ireland? In particular, have they considered the music industry? I have been on holidays in Indonesia and other parts of Asia and I am always struck by the fact that people will talk to me in restaurants and so on about Enya, Chris de Burgh, U2 and other groups. Is there any way the IDA could leverage that knowledge about our musicians? When one engages with the people they do not realise those artists are from Ireland; they are just familiar with the names. There might be potential in that area, and perhaps the IDA is doing that already.

Third, does the IDA operate as a one-stop shop? Apart from attracting foreign direct investment, particularly in view of what has been said about the possibility of Britain leaving the European Union, we should be looking to diversify our exports. One of the failures has been that our exports to Britain now are nearly as high as they were in the distant past when there was a stated policy intention to reduce the dependence on that market. The proximity, the language and so on assisted in that but are we operating as a one-stop shop and helping those companies exporting into those regions as well? The witnesses might expand on that.

My fourth point is to do with access. A number of people mentioned that not being part of the Schengen Agreement can sometimes be an obstacle to attracting tourists but also business people here because of the bureaucracy involved in visas. Do the witnesses have a view on whether we should be part of Schengen? I find it difficult to understand the reason we are not at this stage.

Acting Chairman (Deputy Olivia Mitchell)

There is only one more speaker. I call Senator Mullins and the witnesses can then take all the questions together.

Senator Michael Mullins

It is difficult to come up with a question after the previous speakers' contributions. I join other members in the words of welcome to our visitors and compliment the IDA on the outstanding work it has done for Ireland since its establishment. Given the potential for securing business in the growth markets, is the IDA sufficiently resourced to maximise the impact in these regions?

Ms Sharpe says approximately 9,500 people are employed here in companies attracted from growth markets. What targets have been set to grow this number in the next five years?

Deputy Eric Byrne referred to business practices. There are significant human rights issues in many countries in growth markets and there are companies the practices of which might be much less than we would expect and see in this country. How are discussions on human rights issues initiated when negotiating with companies and discussing opportunities here?

The issue of direct flights to Asia was mentioned. How major an impact, in projected business terms, would direct flights have on the number of additional companies IDA Ireland could attract? What advice would IDA Ireland give to Irish companies and entrepreneurs considering expanding into these areas?

The issue of education and languages has been mentioned. Does Ms Sharpe believe we are taking it seriously enough as we look at how we might grow particular markets? Given the huge opportunity, our third level institutions need to focus much more seriously on this area.

Acting Chairman (Deputy Olivia Mitchell)

I thank the Senator. There is plenty for Ms Sharpe to deal with, but there is an overlap also.

Ms Eileen Sharpe

Some really interesting questions have been posed and I suggest we divide them into themes. As Mr. John Conlon is based in Shanghai, he would be the right person to cover many of the issues in respect of Irish companies in Asia, the one stop shop approach, how we market as an island in terms of Invest Northern Ireland and the criticality of third level institutions and how they operate overseas. As Mr. Shane Nolan runs our business in Dublin, he would be the right person to deal with the questions about access and prioritisation in terms of what companies are looking for; the question of co-ordination at local government level and how it supports our marketing efforts on the ground, and what are the key attractions. I will cover other issues, including the issue of human rights, the efficient resourcing of IDA Ireland and the two tier economy. If the committee is happy with this, we might take that approach.

Acting Chairman (Deputy Olivia Mitchell)

That is perfect.

Ms Eileen Sharpe

I ask Mr. Nolan to begin.

Mr. Shane Nolan

I will start with the key reasons some of these companies invest in Ireland. They differ depending on the company involved and the activity it wants to undertake. The common theme throughout is probably skills. One of the members of the committee asked if it was access to European markets which drove them to Ireland. Access to European markets drives them to Europe. It is a set of other characteristics, characteristics of Ireland, which attracts them here.

By and large, to companies from growth markets, with a particular focus on Asia, skills, not just technical skills but management skills also, are vitally important because many of the companies with which we deal are internationalising for the first time. They come from countries where there is no real blueprint for internationalising. There is no real superstar within their industry sector to which they can look for guidance. They are, therefore, looking for skills in Ireland, including management skills. They are looking for individuals who have previously helped US companies, by and large, to break into European markets.

I will touch on another question that was asked: what is the difference between our selling approach, or our messaging, in the US market and these markets?

In many ways our big challenge is to persuade our Asian prospects that the challenges they will face in growing a European business will be exactly the same as for US companies. It is sometimes assumed in Asia that companies from the United States come to Ireland because they know Europe and that it is all somewhat homogenous. However, when we discuss the details and the fact that the European Union is a single market with 26 flavours of legislation, language and cultures, the complexities become apparent. The skills that have been developed in Ireland to help US companies build their European businesses are also relevant to Asian companies.

Where investments have a business development theme, management skills are important. Technical skills and expertise emanating from the research community are also important. Huawei, a large Chinese electronics company and the second largest manufacturer of telecommunications equipment in the world, was drawn to Ireland by our skills in an area of telecommunications known as automated support systems. It viewed Ireland as being world class in that field thanks to a mixture of multinational and indigenous companies operating in that area.

While skills top the list, they are followed by telecommunications and transport infrastructure. Most Asian markets are brand aware, not only in consumer activities but also in terms of investment decisions. They like to know who else has invested in Ireland.

Tax is probably fourth on the list for the companies with which we engage in growth markets. Our tax regime is probably largely symbolic for these companies because it indicates consistency in Government policy. A change to the policy would indicate that other aspects of legislation were orienting towards the short term.

Acting Chairman (Deputy Olivia Mitchell)

Ms Sharpe spoke about branding Ireland. Was she referring to the lack of knowledge of Ireland in these countries or was she referring to Irish brands such as Kerrygold?

Ms Eileen Sharpe

I was referring to our approach to these markets. In order to navigate a wide geography, we identify the top brands within a market. In China, for example, we target the top ICT companies such as Huawei and become associated with their brands in that market.

Mr. John Conlon

Several members asked about how we could grow our profile in these countries though the Irish diaspora and Irish companies. We work hand in glove with the Department of Foreign Affairs and Trade and the embassy network to build our profile. This is probably more important in growth markets. I worked in the United States before moving to growth markets. A collaborative approach is much more important in areas in which we are not as well known as in the United States, with which we have done business for 50 years. In China and India we are trying to build relationships at different levels, including business, cultural, diplomatic and Government engagement through ministerial visits.

In regard to Irish music, when President Higgins visited China last December music was used throughout his programme to profile Ireland's culture. Culture, music and books are very important in a country such as China.

We do not have a large diaspora in these countries, but we are thinking about the diaspora in a different sense.

We try to use people who have studied, worked or had relationships in Ireland. The various universities try to get foreign students to become their students, but their graduates also attend these gatherings. Each of the embassies will be trying to build a diaspora of that type. The last time the Minister was in Mumbai, for example, one of the universities held a function that was attended by many of its graduates, in addition to potential new students. We use that arrangement as much as possible to build connections with companies.

We absolutely encourage city to city relationships. The more cities that have relationships with these countries the better. As we are very small and unknown, we are in favour of anything that will add to our profile.

With regard to Irish brands abroad, ministerial and trade visits are certainly integrated. I attended one in Australia last summer that involved a combination of IDA Ireland businesses, Enterprise Ireland businesses, co-operation and political meetings through the Department of Foreign Affairs and Trade. Visits tend to be integrated. There were over 20 Irish companies in attendance during the Australian visit. They actually show Ireland as a whole, including foreign direct investment plus the very good Irish companies which are operating.

An interesting point on China is that infant baby formula has helped to build Ireland's profile. Some of the companies carry the tricolour on their products because they are made in Ireland. Many Chinese people do not know very much about Ireland, but they know that we make very good baby formula. Any initiative such as this concerning any brand helps us also.

Acting Chairman (Deputy Olivia Mitchell)

On education and the phenomenon of universities competing, are we doing enough in the case of foreign languages? What is the position on English language schools? While I know that these are peripheral issues, the delegates might like to comment on them.

Ms Eileen Sharpe

Absolutely. We need to develop language capability, ideally at primary school level. I have worked in China for many years and lived in Taiwan and the region. In the early and mid-1990s English was not spoken in many areas, including Taipei, Beijing and Shanghai. They are all speaking English now, but we are not speaking Chinese. This is a challenge for us.

Acting Chairman (Deputy Olivia Mitchell)

Reference was made to using a different diaspora and to those who come from countries with developing markets to be educated. I was in Taiwan last year. The Minister for Finance there, a doctor, was educated in the Royal College of Surgeons of Ireland and had a great interest in the issue. He is representative of a very valuable diaspora. However, it has arisen a couple of times at meetings that Irish universities are competing with one another abroad rather than travelling abroad as a group with the message that one should come to Ireland to attend university. Are the delegates aware of this?

Ms Eileen Sharpe

Truthfully, not really. We work very closely with the universities and engage in joint marketing programmes. On the ground in a country such as China or India one will often find SFI, representatives of a number of universities and us all engaging with different parts of one corporation. Therefore, competition is not regarded as an issue.

Mr. John Conlon

Enterprise Ireland is responsible for the area of education. It works with all universities on promotions.

Acting Chairman (Deputy Olivia Mitchell)

They are to attend a meeting of the committee in a couple of weeks.

Deputy Eric Byrne

The universities do compete. I have seen them do so in Beijing. Institute of Technology Tallaght was ignored, although the delegation is correct that the universities brought their former students together. The argument being made is that there should be a corporate image of educational benefits for third level students coming to Ireland rather than have each university marketing itself to try to get students to come to its campus.

This point was made by the lads last week and is something I have seen myself. As such, I am surprised the IDA thinks there is corporate marketing of Ireland as a base. Regarding the Chinese and Asian markets, we have the family orientation here. They have the one-child family system there and are very protective of their one child. We have this warmth, which is great for marketing. The allegation has been made that institutions are competing when they go out as opposed to representing the totality of Ireland as an educational destination for children.

Deputy Brendan Smith

In 2009 or 2010, UCD launched a particular food or veterinary course tailored to the needs of students in China. I was in Shanghai or Beijing at the launch. Does the IDA know how the course has worked out from the point of view of numbers coming to Ireland and UCD to study? It was on the basis that those people would go back knowing our food system and farming practices. Has that developed?

I note the presence of Irish companies in emerging markets, including some of the major food companies. In particular, those involved in infant formula have had a good presence for many years. There were visits to Ireland by journalists from some of the leading newspapers in China. Not alone did they visit the processing and manufacturing facilities, they went to the farms where the milk was produced. It made for very positive feedback in their publications. Those visits were extremely important.

Deputy Eric Byrne

I have a supplementary question - the one I asked originally which I will ask again. Reading The Irish Times this morning, I saw that a former president in Brazil is before the courts for corruption. How does corruption feature in the IDA's efforts to attract business in these countries?

Senator Michael Mullins

Can Ms Sharpe also address human rights issues?

Ms Eileen Sharpe

These are big questions and one could almost take the issues of corruption and human rights together. We are very aware of the issues and concerns around them in some of these very complex markets. We work very closely with our ambassadors and the Department of Foreign Affairs and Trade. All issues related to corruption and human rights are handled at a political level. We are a business development agency and concentrate our efforts and are very focused on identifying credible, legitimate and sound businesses that are capable of globalising so that we can land them for Ireland. In terms of ensuing we target appropriately and in relation to the corruption issue, we go through very rigorous processes to ensure that the companies with which we work are compliant and will work well in Ireland. That rigour involves internal and external assessments and the development of a business case. A business case must be approved at a number of levels of committee before it is presented to the IDA board for approval. As such, there is a very rigorous process to be gone through before a company becomes an IDA client.

Deputy Brendan Smith

I asked about the UCD course. If the witnesses are familiar with it, how has it evolved?

Mr. John Conlon

I am not familiar with the course. On growth market companies, specifically Chinese ones, they continue to seek technology and Ireland has a good reputation through its infant formula for food safety. Certainly, the Chinese Government is trying to build its food safety systems.

They would consider Ireland as having a very good food safety record. We also have a very good record in regard to the pharmaceutical and life sciences industry.

Deputy Brendan Smith

In regard to languages, there was an initiative for developing an additional language at primary school level, spearheaded by the Kildare education centre. This was a pilot scheme, but despite results from it being positive the initiative ceased. Has the IDA advised the Government or its parent Department, the Department of Jobs, Enterprise and Innovation, of the need for more proficiency in additional languages or called for this to commence at primary level?

Ms Eileen Sharpe

We see this as a really important issue and at every opportunity we express the view that it is vital for the future of foreign direct investment in these location that we have language capability.

Acting Chairman (Deputy Olivia Mitchell)

A couple of people mentioned the issue of visas for companies coming here and for bringing staff with them in the early stages. Some companies have contacted me to say they cannot get a visa for their key person. Is the availability of visas an issue or has the situation improved? What can the IDA do to ensure this is not an issue?

Ms Eileen Sharpe

The situation is much better than it was. I will hand over to Mr. Nolan on this because he works on this area.

Mr. Shane Nolan

We have a memorandum of understanding with our parent Department whereby our clients, once they get an endorsement and visa application from the IDA, get fast track status. Obviously, the IDA is much closer to each of these companies than anybody in the Department's processing office. Therefore, validating the bona fides of the application is outsourced somewhat to the IDA and because we are closer to the process, we can say "Yes" that it is a relevant application, thereby keeping everybody happy that there is nothing untoward happening. As a result, the due diligence process is a lot quicker. Our clients say that from a comparative perspective with other European countries, the situation is much better here. This is a significant competitive advantage for us.

Let me relate an anecdotal story on the broader team Ireland approach to this issue. A CEO of a large Asian prospect for the IDA, a high profile individual, was in New York and was due to travel to Ireland, hopefully to give us a positive message, but realised he had not applied for his visa. His flight was due to leave in three hours and within an hour his visa was in a taxi on its way to the Irish consulate and was brought to him to enable him to travel. He mentions this at meetings at which we are not present, which indicates to us the impact of the fast track visa cannot be overstated and is a competitive advantage. However, the provision of a visa must be legitimate also. We cannot just let anybody through.

Sometimes we get a sense there is a fear that there is a huge flow of workers coming into Ireland with Asian investors, but our experience has been that this is not the case. An initial start-up team does come to transfer knowledge and business culture, but the intent in all cases is to supplement staff with locally hired people and for some of those people hired locally to travel to the headquarters for knowledge transfer there.

Acting Chairman (Deputy Olivia Mitchell)

That is good news.

Senator Michael Mullins

How well is the IDA resourced in order to maximise its impact in the growth markets mentioned?

Acting Chairman (Deputy Olivia Mitchell)

I do not know why the Senator is asking that question. There is only one answer.

Ms Eileen Sharpe

In terms of resources, across the areas mentioned we have the equivalent of 18 full-time people, working in 11 offices. The geography is vast and our job is to be focused on how we apply ourselves to and do the work. We have a strategy for each market and have an operational plan. This means we must identify what sectors, sub-sectors, activities and specific companies we want to target. We then match these with the capabilities of the people we put on the ground. To give an example, China is huge, but what we target there is specific. We target two sectors, international financial services, IFS, and information and communications technology, ICT. Therefore, we have put an IFS specialist in the embassy in Beijing, because Beijing is where the decision-makers and influencers of decision-makers reside.

We apply the same principle all over the markets. This year we were delighted to bring on board a winning abroad team. The initiative was launched by our own Minister. It will be implemented over 12 months and we will recruit 35 people to specifically conduct overseas marketing for us. Honestly, the initiative has been hugely helpful and supportive.

Deputy Eric Byrne

If this question is too political then please do not answer. What is the relevance of this committee to trade issues vis-à-vis the importance or relevance of other Dáil committees?

Deputy Brendan Smith

That is unfair.

Deputy Eric Byrne

The committee members are very conscious that we do not travel. We travel to see aid projects in Sierra Leone but the multiplicity of trade delegations that go are never drawn from this committee.

Acting Chairman (Deputy Olivia Mitchell)

The delegation does not have to answer. On behalf of the committee, I thank the delegation for its presentation and participation. On behalf of all of us, including the members who are not present, would like to express our appreciation of the work done by the IDA now and in the past, particularly now. In recent years, the news of new jobs coming to Ireland were the first signs that a recovery was on its way and was greatly appreciated by us all.